Equifax is one of the three major credit bureaus. It offers a credit score that is derived from a validated statistical analysis; it enables creditors to assess the risks in issuing credit to an individual. The Equifax credit scoring system takes into account the payment records, personal details, current debt, enquiries, and credit history. These factors affect the credit score to varying degrees. Equifax uses the Beacon system to arrive at a credit score. The system is based on the FICO scoring model. The formula used for arriving at the score is not made known to the public.
The credit score and report can be purchased online and once purchased; an individual has access to the score for a period of 30 days. The Equifax credit score report provides a breakdown of the top positive and negative factors that affect the credit score. The credit report also has a section that explains the manner in which creditors view individuals in a given score range. A graph that explains the delinquency rate of individuals in a given range is useful for understanding the concerns of the creditor.
The credit history and public records as they appear on the Equifax report include information on bankruptcies and lien. Negative records can lower the credit score and can remain on the report for as long as ten years. A score of 680 or above on the Equifax score card is usually enough to convince lenders that a person not too great a credit risk. The inquiries section on the Equifax report shows up the hard enquiries that have been initiated by the card holder; these enquiries are there for all creditors to see.
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